The PNP experienced a lot of birth pains and by the turn of the millennium, various national perception surveys showed that the organization is among the most corrupt government agencies in the country. This became a serious national concern resulting in the conduct of in-depth studies of the main causes of dysfunctions as a basis for the development of real and lasting solutions. The findings and recommendations of three (3) intensive studies notably the PNP Reform Commission Study under Former Justice Secretary Sedfrey ORDONEZ; the Joint United Nations Development Program and Government of the Philippines (UNDP-GRP) Study on Transforming the PNP into a More Capable, Effective and Credible Force; and the Transformation Plan crafted by the PNP, became the basis for the development in 2005 of the 10 – year PNP Integrated Transformation Program ( PNP – ITP ) as the PNP’s roadmap for lasting reforms. The PNP-ITP has three (3) paramount objectives: first, to address organizational dysfunctions identified by the different studies and improve the quality of the delivery of police services in our country; second, to strengthen law enforcement capabilities; and third, to enhance the welfare and benefits of PNP personnel and their dependents.

The PNP-ITP has since been implemented by the succession of PNP Chiefs who implemented their respective program thrusts anchored on the twelve (12) key result areas (KRAs). The development and implementation of nineteen (19) priority projects achieved critical milestones and breakthrough results in the transformation efforts. Despite all the gains and achievement after its 5th year of implementation, much reform was still needed to be done and felt especially by the PNP frontline units.

In December 2008, the Millennium Challenge Corporation (MCC) reselected the Philippines as Compact Eligible for FY 2009. In order for the Philippines to be considered into the Compact Agreement that will provide the ‘anti-poverty’ financial grant, it should meet the MCC eligibility criteria in areas of ruling justly, investing in people andeconomic freedom. Moreover, it should adopt the Performance Governance System (PGS) utilizing the Balanced Scorecard (BSC) framework—adapted into local circumstances and setting—with a view of providing a common reference for the governance initiatives that should be undertaken to support national strategic priorities at various levels of the Philippine Government and the Filipino society.

The PGS gives much emphasis on private-public sector partnership (PPP). It considers ordinary citizens’ initiatives and their own governance programs that can contribute towards the pursuit of national strategic priorities. It aligns private and public portfolio of initiatives and action programs with the long-term strategic needs of our country. In short, it invites public and private individuals and institutions to strengthen and contribute to the common good of the Philippines and the Filipino people.

Through a Memorandum issued on July 9, 2009 by then Executive Secretary Eduardo ERMITA, the PNP was mandated together with other five (5) national government agencies to participate in the MCC program requiring the institutionalization of PGS. The PNP was chosen mainly because it was deemed ready for productive participation in good governance based on the progress of its ITP which provides a good basis for the adoption of a comprehensive governance system anchored on the impact that this brings to the community that the PNP directly serves. In compliance to the said Memorandum, PNP Letter of Instructions (LOI) 53/09 was issued, mandating the initiation and institutionalization of the Performance Governance System in the Philippine National Police. Since then, the PNP has progressed much in cascading PGS in all offices and units nationwide.